More and more foreign freelancers and relocators are choosing Serbia for its simple flat-rate taxation and low costs. But before you send your first invoice, you need to untangle the order of the steps: business registration, PIB (tax ID), bank account and residence don’t always come in the order you might expect. In this article we explain how a foreigner realistically opens a flat-rate business in Serbia.

Can a foreigner even be a flat-rate entrepreneur?

Yes. A foreign national can register as an entrepreneur and opt for flat-rate taxation under the same conditions as a Serbian national. There are no special restrictions based on citizenship. The difference is that, in order for the business to function over the long term, a foreigner also has to sort out their residence and work status in Serbia, whereas for Serbian nationals this is taken for granted.

The flat-rate regime has two key limits that must be tracked in parallel (figures for 2026):

The turnover limit for flat-rate taxation is 6 million RSD per year. If it is exceeded by 30 June, the switch to double-entry bookkeeping takes effect from 1 July of the same year; if it is exceeded later, from 1 January of the following year.
The threshold for entering the PDV (VAT) system is 8 million RSD, but it is calculated differently: it looks at turnover over the previous 12 months, not by calendar year.

These are two separate limits and must not be confused. It is possible to cross the PDV threshold while still being below the flat-rate limit, and vice versa.

Step 1: Registering the business with the APR

Entrepreneur registration goes through the Business Registers Agency (APR). For a foreigner, a passport and a registration application are sufficient. The only difference compared to Serbian nationals is that the data in the application is taken from the passport instead of the national ID card. The business is usually registered within 1-2 business days.

An important warning: at registration the APR will not ask for a residence or work permit. That does not mean they are not needed. Without a settled residence and work status, you may run into problems when opening a bank account and later with the Tax Administration. So treat the business registration as the first step, not as the end of the job.

Step 2: PIB and tax return

The tax identification number (PIB) is assigned as part of the entrepreneur registration. After that, the tax return for flat-rate taxation (form PPDG-1R) is filed electronically, via the Tax Administration portal, using a qualified electronic signature.

If a foreigner does not yet have an electronic signature (a chip on the national ID or a separate card), the return can be filed by an authorized person, most often an accountant, on the basis of a PEP form (application for electronic business operations). This is a practical solution at the start, until you obtain your own e-signature.

Step 3: Residence registration and opening a bank account

Before you go to the bank, you need to have registered your residence, the so-called white card (beli karton). A foreigner registers their residence address within 24 hours of entering Serbia, through the Ministry of the Interior (MUP) or via the eUprava (eGovernment) portal if you are staying in private accommodation.

To open a business account, standard documentation is usually enough for the bank (the APR excerpt, passport, white card). Keep in mind that banks carry out additional checks for non-residents, so opening an account can take longer than for domestic clients. Practical tip: ask the bank in advance which list of documents it requires for foreign entrepreneurs, because practices differ from bank to bank.

Step 4: Single permit for residence and work

This is the most important change for relocators. Since 1 February 2024, residence and work are handled through a single, combined application, instead of separately applying for residence and then a work permit. The application is filed exclusively online, via the portal for foreigners (eforeigner.welcometoserbia.gov.rs).

The basis for an entrepreneur is self-employment, that is, carrying out a business activity in a business entity owned by the foreigner.
The permit is issued for a period of up to a maximum of 3 years, depending on the basis and the documentation submitted.
The procedure is digitalized, so all documents are submitted electronically. Upon submission you receive a confirmation that the procedure has been initiated, with a reference number.

In practice, the evidence usually requested includes a passport, proof of a registered business (APR excerpt), residence registration, health insurance, proof of means of support and a lease agreement or other proof of address. Always check the exact list on the portal itself, as it may change.

Specifics for relocators (Russian- and English-speaking)

For relocators who don’t speak Serbian, the biggest obstacles are not the rules but the paperwork in the local language and communication with institutions. A few practical notes:

Foreign documents (diplomas, certificates) often require a certified translation into Serbian by a court interpreter and, in some cases, an Apostille stamp.
The Tax Administration and foreigners’ portals are predominantly in Serbian. Help from an accountant or an agency speeds things up and reduces the risk of errors in filings.
The order can be a chicken-and-egg situation: you can register the business before the permit, but residence and work should be sorted out right afterwards, so that the bank and the Tax Administration don’t cause problems.
Plan your time: registering the business is quick (a couple of days), but the whole process including residence and the bank realistically takes weeks.

Key takeaways

A foreigner can be a flat-rate entrepreneur under the same conditions as a Serbian national; citizenship is not an obstacle.
The flat-rate limit is 6 million RSD per year, and the PDV threshold is 8 million over the previous 12 months (2026) – these are two different limits.
Registration with the APR is quick (1-2 days) and requires only a passport, but without residence and work status, problems arise with the bank and the Tax Administration.
Since 1 February 2024, residence and work are handled with a single combined permit, online, for a period of up to 3 years.
The white card (residence registration) is filed within 24 hours of entry and is required before the bank and the permit.

If you need help with registration, the tax return or communicating with institutions in Serbian, get in touch with us.